Question

Hilliard Neutraceuticals and Ahrens Vitamins, Inc., have high market commonality, both geographically and in the market segments in which they compete. Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader, by introducing a new nutrition supplement product. Which of the following statements is most likely to be TRUE?
A. Ahrens will not respond aggressively since this is a strategic move and not a tactical action
B. Ahrens will respond aggressively because of the high market commonality between Hilliard and Ahrens
C. As the market leader, Ahrens has little to fear from an attack by Hilliard and will not expend organizational slack on a major response
D. Ahrens will only be able to respond after a long delay as developing new products in the nutrition supplement industry takes a long time

Answer 1

Answer:

B. Ahrens will respond aggressively because of the high market commonality between Hilliard and Ahrens

Explanation:

Base on the scenario been described in the question the question, the one that is true is that Ahrens will respond aggressively because of the high market commonality between Hilliard and Ahrens. And because Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader, by introducing a new nutrition supplement product which makes Ahrens to react that way.